First National Bank records 450% growth in profit-after-tax
South African-owned First National Bank Ghana, for the year ended 2021, recorded a 459 percentage points increment in its profit-after-tax.
The bank for the review period grew its profit-after-tax from GHS 731,000 at end-December 2020 to GHS 4.09m at end-December 2021.
Per the Bank’s 2021 Financial Statement, net fees and commission which grew by 100 percentage points from GHS 11.7m to GHS 22.8m as well as net interest income which increased to GHS 104m from GHS 95m in the previous year, mainly accounted for the huge growth in the bank’s profit-after-tax.
Cash and cash equivalents recorded within the review period grew from GHS 555m in 2020 to GHS 649m in 2021.
Investment securities of the bank also grew from GHS 643m to GHS 744m at end-December 2021.
Loans and advances made to businesses and households by First National Bank increased from GHS 753m in 2020 to GHS 780m in 2021.
Cumulatively, First National Bank which has been adjudged the Best Investment Bank in Ghana for 2022 by the Global Finance Magazine, ended 2021 with a total assets value of GHS 2.48bn, marking a year-on-year increase of GHS 127.4m from the 2020 total assets value figure of GHS 2.35bn.
Total liabilities on the other hand, slightly increased from GHS 1.81bn in 2020 to GHS 1.93bn in 2021, mainly driven by increment in deposits from customers which accounted for GHS 1.1bn of total liabilities.
Of the total amount given, some GHS 28.1m representing 3.49% of total loans given, was categorised as non-performing loans (NPL).
Compared to the industry’s average of 14.4%, First National Bank’s NPL of 3.49% represents a relatively strong loan asset quality.
First National Bank ended 2021 with a strong Capital Adequacy Ratio (CAR) of 36.62% which is well above the Bank of Ghana’s newly hiked Capital Adequacy Ratio of 13%.
Peruse details of Financial Statement below:
